Net Power Inc. (NYSE: NPWR) has signed two agreements to expand power generation capacity for its first project in Texas, according to a company press release.

The Houston-based company made a $20 million deposit to secure exclusive rights to acquire 123 megawatts of gas-fired power generation equipment. If the deal closes, Net Power's total potential capacity for the first phase of Project Permian would reach nearly 200 MW. The deposit will be credited toward the total purchase price at closing, which is expected in the third quarter. A portion of the remaining balance will be paid from cash on hand at closing, with the rest tied to equipment manufacturing, delivery, and installation milestones.

The agreement remains subject to third-party consents, definitive documentation, and other closing conditions.

In a separate agreement, an unnamed prospective customer agreed to reimburse specified, documented third-party costs Net Power incurs in connection with the equipment acquisition and related project development. The cost reimbursement arrangement is subject to an aggregate cap and does not obligate either party to enter into an energy services agreement or commit to purchasing power. Net Power said the agreement may serve as collateral to support equipment financing.

"When taken together, these agreements provide us the opportunity to secure and deliver more power sooner with appropriate financial protections," said Danny Rice, Chief Executive Officer of Net Power.

Net Power focuses on natural gas power generation project development, with equipment designed to accommodate carbon capture in later phases. Project Permian is described as the company's inaugural powered land project.